Nordson Corp. plans to sell the screws and barrels product line in its polymer processing systems division to Chicago-based private equity firm Altair Investments Inc.
The product line generates more than $70 million in annual sales and employs 500, a news release from the Westlake, Ohio-based company said.
In the release, Executive Vice President and Chief Financial Officer Joseph Kelley said the transaction will require "a one-time, non-cash asset impairment charge of approximately $87 million."
The product line had previously been part of Nordson's Industrial Precision Solutions segment. Nordson and Altair have entered into a definitive agreement around the sale and expect the deal to close in the first quarter of fiscal 2021. Nordson makes precision dispensing equipment.
"Using NBS Next, Nordson's growth framework, we are focusing our resources on precision technology solutions that will deliver profitable growth for the company," Nordson President and CEO Sundaram Nagarajan said in the release. "Our screws and barrels product line is a respected market leader in the polymer processing industry. While this product line no longer fits Nordson's strategic focus, we believe it will do well with Altair. I want to personally thank the employees, who support this product line, for their contributions to Nordson and wish them success in their future with Altair."
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